Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Indian share markets extend losses
Fri, 24 Aug 01:30 pm

Indian share markets continued to fall in the last two trading hours. Barring FMCG and pharma all the sectoral indices are trading negative with realty, capital goods and banking stocks leading the pack of losers.

BSE-Sensex is down 111 points and NSE-Nifty is trading down 39 points. BSE Mid Cap is down 0.8% and BSE Small Cap index is down 0.7%. The rupee is trading at 55.3 to the US dollar.

All the banking stocks are currently trading in red with IDBI Bank and Oriental Bank leading the pack of losers. Reserve Bank of India (RBI) in its FY12 annual report has said that the total recapitalization cost of the banking system to bring it in line with the Basel-III norms is Rs 1.75 trillion. Out of this the public sector banks controlling 70% of the operations will require equity capital of Rs 1.5 trillion whereas the private banks will require equity infusion of Rs 250 bn. As far as non-equity capital is concerned, the public sector lenders will require Rs 2.7-2.8 trillion whereas private lenders will need Rs 500-600 bn. RBI had formulated the Basel-III norms in 2012 to fortify the banking system against risk of financial collapse. The guidelines will be implemented in a phased manner from March 2013 extending upto March 2018. RBI has said that the implementation of the Basel-III norms would be challenging but manageable.

Majority of the large technology stocks are trading in red with Info Edge and Moser Baer being the biggest losers. Infosys' management is of the view that discretionary spending is showing signs of revival in developed regions such as the US and Europe. However, the management added that the larger deals are taking time to fructify. The management believes that the clients are getting used to the over uncertain environment in the regions. However, the situation in the US has improved as compared to before. The financial services sector (a major chunk of revenues are generated from this sector) still remains a challenging segment for the company as clients are still operating on tight budgets. It may be noted that Nasscom has projected the Indian IT industry to grow by about 11-14% for the current fiscal. Infosys stock is down 1.2%.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Indian share markets extend losses". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.